Andhra Pradesh has more ration card holders than households

The Congress govt headed by under Y S Rajasekhara Reddy had reintroduced Rs 2-a kg rice scheme

With the introduction of Rs 2 a kg rice scheme in the early 80s by Telugu Desam Party founder and matinee idol N T Rama Rao, the public distribution system (PDS) in Andhra Pradesh has evolved into a 49,000-strong dealer network.  

The Congress government under Y S Rajasekhara Reddy had reintroduced the Rs 2-a kg rice scheme. However, the present government under chief minister N Kiran Kumar Reddy has been offering this at Re 1 a kg since November 2011.
 
The state civil supplies department, which overseas the PDS, currently handles the distribution of over 4 million tonne rice a year to both below poverty line (BPL) and above poverty line (APL) families.

In addition, the government recently launched a supplementary scheme called 'Amma Hastam' (mother's hand)  under which gives a package of nine essential items including tur and tamarind at a subsidised rate to BPL families.

Interestingly, over 85% of all the households in the state enjoys the 'privilege' of being BPL families to whom the government offers 20 kg rice per family at Re 1 a kg. For instance, the state civil supplies department has allotted 3,40,000 tonne rice at Re 1 a kg for distribution to 21.8 million households under the BPL category in March.

According to the 2011 census, the state has 21 million households whereas the total ration cards (both BPL and APL) in circulation are about 22 million of which, 19 million are BPL cards. The government has issued another 2.5 million temporary ration cards in the last couple of years taking the total number to 24.5 million.

These statistics suggest a large-scale misuse of the PDS scheme in the state at multiple levels.The government has been trying to introduce the biometric system to eliminate the misuse at the dealer point and also to weed out duplicate cards out of the circulation. However, these measure are still at a pilot stage even though the department had captured the biometric data of these households.

The state government is spending about Rs 2,700 crore a year on the subsidised rice scheme. This is in addition to the amount that comes from the Government of India towards food subsidy. The state civil supplies department on its own procures rice -- both raw and milled -- to meet the PDS needs. Further shortfall is met by the Food Corporation of India (FCI).  

The government gives 20 kg rice to BPL cardholders and 35 kg to Antyodaya (central scheme) cardholders at Re 1 a kg.

<sup>Total Households in AP according to 2011 Census: 21 million

Total number of ration cards (both BPL and APL) covered by PDS: 24.5 million

Permanent BPL cards issued so far: 19 million

Rice distributed at Re 1 a kg: 3,60,000 tonnes a month

Total quantity of rice handled in a year by PDS: 4.2 million

AP's spending on food subsidy: Rs 2,700 crore</sup>